IFRS

(Problem 4.4) On December 31, 2005, the Investment in Ryble Branch ledger account in the accounting records of the home office of Yugo Company shows a debit balance of $55,500. You ascer- tain the following facts in analyzing this account: CHECK FIGURES 1. On December 31, 2005, merchandise billed at $5,800 was in transit from the home a. Unadjusted balance, office to the branch. The periodic inventory system is used by both the home office and $49,680; d. Adjusted the branch. balances, $57.480. 2. The branch had collected a home office trade account receivable of $560 on December 30, 2005, the home office was not notified. 3. On December 29, 2005, the home office had mailed a check for $2,000 to the branch. but the accountant for the home office had recorded the check as a debit to the Chari- table Contributions ledger account; the branch had not received the check as of Decem- ber 31, 2005 4. Branch net income for December 2005 was recorded erroneously by the home office at $840 instead of S480 on December 31, 2005. The credit was recorded by the home office in the Income: Ryble Branch ledger account. 5. On December 28, 2005, the branch had returned supplies costing $220 to the home office; the home office had not recorded the receipt of the supplies. The home office records acquisitions of supplies in the Inventory of Supplies ledger account. Instructions a. Assuming that all other transactions and events have been recorded properly, prepare a working paper to compute the unadjusted balance of the Home Office ledger account in the accounting records of Yugo Company's Ryble Branch on December 31. 2005. b. Prepare journal entries for the home office of Yugo Company on December 31, 2005, to bring its accounting records up to date. Closing entries have not been made. c. Prepare journal entries for Ryble Branch of Yugo Company on December 31, 2005, to bring its accounting records up to date. d. Prepare a reconciliation on December 31, 2005, of the Investment in Ryble branch ledger account in the accounting records of the home office and the Home Office ac- count in the accounting records of Ryble Branch of Yugo Company. Use a single col- umn for each account and start with the unadjusted balances. (Problem 4.4) On December 31, 2005, the Investment in Ryble Branch ledger account in the accounting records of the home office of Yugo Company shows a debit balance of $55,500. You ascer- tain the following facts in analyzing this account: CHECK FIGURES 1. On December 31, 2005, merchandise billed at $5,800 was in transit from the home a. Unadjusted balance, office to the branch. The periodic inventory system is used by both the home office and $49,680; d. Adjusted the branch. balances, $57.480. 2. The branch had collected a home office trade account receivable of $560 on December 30, 2005, the home office was not notified. 3. On December 29, 2005, the home office had mailed a check for $2,000 to the branch. but the accountant for the home office had recorded the check as a debit to the Chari- table Contributions ledger account; the branch had not received the check as of Decem- ber 31, 2005 4. Branch net income for December 2005 was recorded erroneously by the home office at $840 instead of S480 on December 31, 2005. The credit was recorded by the home office in the Income: Ryble Branch ledger account. 5. On December 28, 2005, the branch had returned supplies costing $220 to the home office; the home office had not recorded the receipt of the supplies. The home office records acquisitions of supplies in the Inventory of Supplies ledger account. Instructions a. Assuming that all other transactions and events have been recorded properly, prepare a working paper to compute the unadjusted balance of the Home Office ledger account in the accounting records of Yugo Company's Ryble Branch on December 31. 2005. b. Prepare journal entries for the home office of Yugo Company on December 31, 2005, to bring its accounting records up to date. Closing entries have not been made. c. Prepare journal entries for Ryble Branch of Yugo Company on December 31, 2005, to bring its accounting records up to date. d. Prepare a reconciliation on December 31, 2005, of the Investment in Ryble branch ledger account in the accounting records of the home office and the Home Office ac- count in the accounting records of Ryble Branch of Yugo Company. Use a single col- umn for each account and start with the unadjusted balances